Equipment lease calculator
Estimate monthly rentals for leased equipment. Choose how many rentals are paid upfront and add a residual value to see how an operating lease can lower the rentals.
Estimated monthly rental (ex VAT)
€1,795.69
- VAT per rental (23%)
- €413.01
- Paid at the start (3 rentals, ex VAT)
- €5,387
- Total rentals (ex VAT)
- €86,193
Profile: 3 + 45. With a lease the lender owns the equipment; VAT is charged on each rental rather than up front.
Check eligibility for this amountIllustrative only. Actual rates, fees and terms depend on your circumstances and the lender. This is not an offer of finance.
How this calculator works
With a lease, the lender owns the equipment and your company pays rentals to use it. Rentals are usually paid in advance, with one or more paid at the start.
VAT is charged on each rental rather than upfront, which spreads the VAT cost. A VAT-registered company can normally reclaim it on its returns.
A residual value is the amount the lender expects the equipment to be worth at the end. Setting one lowers the rentals because you are not paying off the full cost.
For illustration only: €75,000 of equipment over 48 months at an example 8.5% a year, with 3 rentals upfront and no residual, gives rentals of about €1,811 a month plus VAT.
Want to understand the product first? Read our guide to equipment leasing.
Equipment lease calculator: common questions
How are lease rentals calculated?
The calculator spreads the cost of the equipment, less any residual value, over the term at the rate you enter, with rentals paid in advance. The more rentals you pay upfront, the lower the remaining monthly rentals. VAT is added to each rental separately, and fees are not included.
What is the difference between an operating lease and a finance lease?
Under a finance lease your company pays for most or all of the asset’s value over the term and takes on most of the risks of owning it, though the lessor keeps ownership. Under an operating lease you pay for its use for part of its life, and the lessor takes the risk on its value at the end.
Do leases still stay off the balance sheet?
Mostly not, from 2026. Under FRS 102, for accounting periods starting on or after 1 January 2026, lessees bring most leases onto the balance sheet as a right-of-use asset and a lease liability. Short-term leases of 12 months or less and low-value assets can be exempt. Micro-companies using FRS 105 are not affected. Ask your accountant.
What is the difference between leasing and hire purchase?
With hire purchase your company owns the asset at the end and usually claims capital allowances. With a lease the lender owns it, and your company usually deducts the rentals as a business expense instead. VAT on hire purchase is usually paid upfront; on a lease it is charged on each rental.
Can I keep the equipment at the end of a lease?
Options vary. You may be able to extend the lease for a lower secondary rental, return the equipment, or sell it on the lender’s behalf and share in the proceeds. Ownership usually stays with the lender, so check the end-of-term options before you sign.
Is VAT charged on lease rentals?
Yes. VAT is charged on each rental, at the standard rate of 23% for most equipment. A VAT-registered company can usually reclaim it on its returns where the equipment is used for taxable business, which spreads the VAT cost instead of paying it all at the start.
Are lease rentals tax-deductible?
For most operating leases, rentals are treated as a trading expense for corporation tax. Finance leases and leases with an option to buy can be treated differently, and accounting changes from 2026 affect how leases appear in your accounts. Ask your accountant how your lease will be treated.
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Get real figures for your company
Checking involves no credit search and is not recorded on the Central Credit Register. No obligation.
- No credit search, not recorded on the Central Credit Register
- One request, several lenders: we’re a broker, not a lender
- For limited companies registered in Ireland
- No fees for your company: we’re paid commission by the lender
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